Over a thousand UK funds are in a race to comply with the UK’s Sustainability Disclosure Regulations (SDR), ahead of a major deadline on naming and marketing of funds on 2 December.
According to data from FE fundinfo, 1,213 UK funds with sustainability-related terminology in their names will need to comply with the new stringent requirements on the naming and marketing of funds under SDR. The data was sourced from FE fundinfo’s fund research platform FE Analytics.
The funds effected include ETFs, IA unit trusts, open-ended investment companies (OEICs), and investment trusts. Other funds, including offshore funds, will come into scope later.
Out of the funds in scope for the 2 December deadline, 48% are ETFs, 51% IA unit trusts/OEICs, and 1% investment trusts.
The 1,213 funds were analysed against the more than 12 “sustainability-related terms” set out by the FCA that meant a fund needs to comply with SDR:
Dr. Matthias Breier, head of ESG product at FE fundinfo, said: “The clock is ticking for UK funds to meet the December deadline. Getting these labels is a tricky process, with only a few funds able to do so at present. We are likely to see some movement in the ESG market over the coming months, as some firms will have to rebrand or reposition their funds if they cannot comply in time.”
